Who is a Cosigner?
A cosigner is a person who agrees to be financially responsible if the borrower defaults on their loan. A cosigner can be someone you know (a family member, friend, or co-worker) or a stranger who has been pre-approved and approved by lenders.
When you’re looking for a mortgage broker, it’s important to find one that will provide you with the right service. When you have a cosigner in your life, they’ll hold themselves accountable for getting you the best deal possible. This means they’ll actually do their research on what’s available and help you compare offers from different lenders.
A cosigner also helps make an already complicated process much easier. Your lender may require a cosigner for certain reasons, such as if your credit is not up to par; however, this does not mean that you should avoid finding one!
Tips To Find the Right Mortgage Broker
When it comes to finding the right mortgage broker, there are many things to consider. One of the most important of these is what type of services you want from them. When you’re choosing a mortgage broker, there are three major types they can be: a lead agent, an intermediary agent, or a full-service agent. A lead agent will get you pre-qualified for a certain loan and introduce you to their network of lenders; intermediaries act as brokers between lenders and borrowers but don’t actually write mortgages, while full-service agents offer everything that both intermediaries and lead agents do. Do your research before making your choice! Read on for more information about each option!
What are the different types of mortgage brokers?
A mortgage broker can offer a number of services to the borrower, but it all depends on what type of broker they are. There are three different types of brokers:
Lead Agent: A lead agent is a broker who will get you pre-qualified for a loan and introduce you to their network of lenders. They don’t actually write any mortgages; they’re just the first step in the process. In most cases, lead agents charge upwards from $500 per hour to $1,000 per hour.
Intermediary Agent: An intermediary agent is a broker who gets borrowers loans from lenders and then helps the borrower shop around for the best deal. The intermediary agent typically charges an hourly fee between $75 an hour and $150 per hour for their services.
Full-Service Agent: A full-service agent is a broker who handles everything from getting you pre-qualified for your loan to help you find financing options and make sure everything goes through smoothly with your lender. Full-service agents typically charge an hourly fee between $200 -$350 per hour.
The differences between lead agents, intermediaries, and full-service
Lead agents are typically a bit cheaper than full-service agents because they don’t offer the same services. They’re more like a broker in the sense that they’ll help you get pre-qualified and introduce you to other lenders, but they won’t actually write your mortgage for you. For example, if you’re looking for a $300,000 loan and your income is around $80,000, a lead agent would get you pre-qualified with one lender who would then send you information about their loan program.
Intermediaries also act as brokers between lenders and borrowers but don’t actually write mortgages. For example, if you have good credit and need to borrow $200,000, an intermediary agent can be an easy solution for quickly getting into contact with multiple lenders. However, intermediaries are typically less expensive than lead agents because they don’t have the same experience or network of lenders as lead agents do.
Full-service brokers provide everything that both intermediaries and lead agents do. They will help with any aspect of getting a mortgage:
- Finding the right lender for your needs
- Helping with pre-qualification applications and paperwork (including handling loan origination)
- Helping with approval letters and paperwork (including handling underwriting)
There are so many options when it comes to finding mortgage brokers that it’s difficult to know what to look for. There are lead agents, intermediaries and full-service mortgage brokers who all have different types of services. To find the perfect mortgage brokers for you, consider what type of mortgage service you need and their reputation. You’ll want to make sure that the broker you choose is trustworthy and also has a high success rate.